Business Opportunities Weblog notes that My Wealth Builder, which you are currently reading, is worth $350,579.34. In addition, several other blogs which I read are highly valued using this price calculator. Here are a few examples.
Money, Matter, and More Musings - $455,019.24 as of 5/12/07
The Digerati Life - $522,764.04 as of 5/12/07
BioHealth Investor - $326,868.66 as of 5/12/07
Investor Trip - $355,660.20 as of 5/12/07
Is another bubble happening? My answer is no for the following reasons:
- No one is buying. While Money, Matter and More Musings had been in discussions with Warren Buffett, none of us has been so fortunate yet:-) I have yet to receive any offers to buy my blog, much less one at an offer near the above prices. Perhaps, I should issue a 20% of discount coupon valid on Mother's Day.
- Revenue or profits are being used to determine prices. The above calculations are based on the number of links and uses the same link to dollar ratio as the AOL - Weblogs deal. I expect that a more realistic price for my blog would be 10 to 20 times revenue. I can confirm that my blog is not making $17,000 to $35,000 per year to justify a $350,000 sales price.
- It's easy to start a blog. The cost of entry is low. Why buy one when creating one costs far less and is easy to do? Technorati highlights that there are over 71 million blogs, up from 55 million 9 months ago.
For more on Reflections and Musings , check back every Saturday for a new segment.
Photo Credit: morgueFile.com, Jane M. Sawyer
This is not financial advice. Please consult a professional advisor.
Copyright © 2007 Achievement Catalyst, LLC
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3 comments:
WTH? FOR REAL? Ok, I never saw this valuation mechanism before. Not only that, I doubt very much I could be valued higher than Money, Matter and More Musings!
If this were true, I'd be retired by now. :D
Good find though!
Here's another tool that I find to be a little more representative of how your website could be monetized: http://www.dnscoop.com/
It values your domain name, page rank, and various search engine listings for your site, as well as estimating what you would likely get from monthly text link advertising.
I don't recall the exact value, but for the calculations you mentioned, it takes the amount of links you have in Technorati and multiplies it by $5xx.
Digerati Life,
If only this were true. I've been blogging for 10 months and produced $350,000. I would happily create a new blog every year for that kind of money :-)
Dimes,
I experienced the same issue also. The solution is to make sure the URL doesn't have any extra characters. http://dimestodollars.blogspot.com should work. (At least, it did for me:-) If there is a / after .com, the application will return $0.00.
Willster,
Thanks for the information and the link. dnScoop appears to give a more realistic estimate a blog's value. dnScoop priced My Wealth Builder at $3328, which I think is closer to a potential sales price than $350,000.
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